Jeffrey Dow Jones
Hedge fund analyst, newsletter provider, research analyst, portfolio strategy

Favorable Tailwinds For Carnival Cruises

Some investors hate idiosyncratic risk. Others embrace it.

Only a handful of industries suffer negative "surprise" events the way that the cruise industry seems too. The latest shock came earlier this week when Carnival slashed its 2013 guidance because of weak earnings margins. Apparently, customers need a little extra incentive to book a cruise after the February fiasco involving the Carnival Triumph.

In conjunction with the revised guidance, many analysts downgraded the stock. Carnival dropped around 6% and the stock is now down 15% from its high before the "Triumph." (zing!)

(click to enlarge)

Carnival has its hands full right now for very specific reasons, and in a general sense, the cruise industry tends to be highly polarizing.

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